In Ukraine, they propose to declare entire settlements unfit for life: what will happen to housing compensation?

In Ukraine, the procedure for receiving compensation for housing destroyed as a result of the war may be changed. Bill No. 11444 provides for the possibility of declaring entire settlements uninhabitable and simplifying confirmation of the fact of destruction of real estate. At the same time, the document has not yet been adopted – the relevant committee of the Verkhovna Rada only recommended its adoption as a basis.

When a settlement can be declared uninhabitable

The bill proposes to provide the Cabinet of Ministers with the opportunity to declare a settlement completely uninhabitable.

For this, two conditions must be met simultaneously: at least 70% of the housing stock is damaged or destroyed, and utility systems are actually not working – there is no electricity, water, gas, and heating.

If the Cabinet of Ministers adopts the appropriate decision, it is proposed that each property in such a settlement will automatically be equated with destroyed.

This means that owners will not have to wait for a separate commission to inspect each house or apartment.

Does this mean automatic payment of money

No. Even if a settlement is declared uninhabitable, the owner will still need to apply for compensation, confirm ownership, and go through the prescribed procedure.

That is, it is proposed to make the recognition of real estate as destroyed automatic, rather than the payment of compensation.

What other changes are proposed

The draft law No. 11444 also provides for additional changes for compensation recipients.

In particular, it is proposed to exempt housing certificate holders from paying the 1% fee for mandatory state pension insurance when purchasing new housing with compensation funds.

The money received under the eRecovery program is planned to be protected from arrest and foreclosure. The exception should be cases where compensation was received illegally.

The funds may also be allowed to be used to repay an existing mortgage or purchase a land plot for construction. For mortgage housing, the consent of the lender will be required.

What is proposed for housing in occupied territories

By the second reading, the relevant committee plans to finalize the document and take into account the provisions of two more draft laws.

One of them — No. 14352 — concerns real estate in temporarily occupied territories and in areas of active hostilities, where it is impossible to conduct a physical inspection of the housing.

It is also proposed to recognize such real estate as destroyed. At the same time, after receiving compensation, the owner must transfer the relevant object to the state or territorial community through a notary.

Another draft law — No. 15421 — concerns compensation for damage caused by military emergencies, in particular, explosions of ammunition.

NACP pointed to corruption risks

The National Agency for the Prevention of Corruption had previously raised comments on draft law No. 11444.

The NACP drew attention, in particular, to the insufficiently clearly defined procedure for the formation and work of commissions that will participate in resolving issues related to settlements. Other state bodies and parliamentary committees also expressed their comments on the document.

The new rules are not yet in force. Draft Law No. 11444 has only been recommended by the relevant committee for adoption as a basis, and the date of its consideration in the Verkhovna Rada has not yet been determined.